Amex Shares Fall Despite Earnings Beat and AI-Driven Job Cuts
American Express shares closed 3.62% lower on Friday even though the company exceeded Q3 profit estimates. The credit card issuer plans to cut about 5% of its 77,000-person global workforce as it prepares for AI. It is also taking a $336 million restructuring charge tied to the plan.
American Express shares ended Friday down 3.62%, even though the company reported quarterly profit above estimates. The drop came despite the earnings beat.
The credit card issuer plans to reduce its global workforce by roughly 5%, out of about 77,000 employees, as it prepares for AI. It is also recording a $336 million restructuring charge connected to that plan.
The planned cuts could affect thousands of workers and their families, while remaining employees may see roles and expectations change as AI is adopted. Investors may weigh the restructuring charge against possible efficiency gains. Customers could experience operational or service changes, though specific effects are not described. More broadly, large employers citing AI in workforce decisions may influence how workers and communities view automation’s role in the labor market.